Section 10 Bonds and notes secured by trust agreement; depository of proceeds; protective provisions of agreement; expenses - Massachusetts Statutes

Section 10. In the discretion of the authority, bonds and notes issued by it shall be secured by a trust agreement by and between the authority and a trustee, which may be any trust company or bank having the powers of a trust company within the commonwealth, or a co-operative bank as provided in section thirty-two E of chapter one hundred and seventy. Either the resolution providing for the issuance of bonds and notes or such trust agreement may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the authority in relation to the custody, safeguarding and application of all monies.

It shall be lawful for any bank or trust company incorporated under the laws of the commonwealth to act as depository of the proceeds of bonds and notes or of revenues and to furnish such indemnifying bonds or to pledge such securities as may be required by the authority. Such trust agreement may set forth the rights and remedies of the bondholders and noteholders and of the trustees, and may restrict the individual right of action by bondholders and noteholders. In addition to the foregoing, such trust agreement may contain such other provision as the authority may deem reasonable and proper for the security of the bondholders and noteholders. All expenses incurred in carrying out the provisions of such trust agreement may be treated as a part of the cost of the operation of the authority.